Lenders reveal reduced mortgage rates

NatWest and its subsidiary the Royal Bank of Scotland (RBS) have reduced their mortgage rates for new and existing customers.

Available from today, the reductions – which range from 0.25 per cent to 0.7 per cent – apply to the lenders’ two, three and five-year fixed-rate deals.

A two-year deal at 60 per cent loan-to-value (LTV) and a £799 fee is on offer at a rate of 3.99 per cent, while five-year options at 90 per cent LTV with a £499 fee now carry a 6.49 per cent interest charge.

Director of branch mortgages Andy Fell stated that the range gives the lenders a “great opportunity” to help borrowers get a low-rate mortgage.

“We remain committed to helping our customers and supporting them by offering a range of competitive deals during these challenging economic conditions,” he added.

Homeowners who are considering switching their mortgage as part of a debt management plan may be attracted to the 90 per cent LTV offer, as the Council of Mortgage Lenders has stated the supply of such mortgages is diminishing.

By Tom Musk